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Are Investors Undervaluing OMV (OMVJF) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is OMV (OMVJF - Free Report) . OMVJF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.93, which compares to its industry's average of 14.01. Over the last 12 months, OMVJF's Forward P/E has been as high as 11.88 and as low as 8.40, with a median of 9.53.

We should also highlight that OMVJF has a P/B ratio of 0.95. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.30. Within the past 52 weeks, OMVJF's P/B has been as high as 1.17 and as low as 0.95, with a median of 1.09.

Finally, we should also recognize that OMVJF has a P/CF ratio of 4.38. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. OMVJF's current P/CF looks attractive when compared to its industry's average P/CF of 6.38. OMVJF's P/CF has been as high as 7.59 and as low as 4.31, with a median of 4.77, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that OMV is likely undervalued currently. And when considering the strength of its earnings outlook, OMVJF sticks out at as one of the market's strongest value stocks.


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